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The benefit to the companies (and mutual funds) is that they do not have to incur the expense of mailing out quarterly dividend checks to investors. The popularity of DRIPs also helps
http://www.ehow.com/facts_7157193_dividend-reinves...
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1. Open a brokerage account and fund it, if you do not have one already. This can be done online, over the phone, in person or through the mail. 2. Buy a stock that issues a quarterly
http://www.ehow.com/how_5289084_enroll-dividend-re...
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1. Find companies that offer a DRIP program. Using your Internet connection, identify companies with a good and stable track record of paying dividends. 2. Go to the website of all
http://www.ehow.com/how_6573764_start-investing-di...
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1. Receive a Form 1099 after the end of the year from all companies that paid you dividend income during the previous year. Check that the amounts correspond to the reinvestment plan
http://www.ehow.com/how_2105637_report-taxable-div...
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